The Fantom blockchain has announced an initiative to reward projects utilizing its network and contributing to high gas fees usage, ultimately aiming to drive increased demand for block space, according to a recent tweet from the developers. Eligible applications will receive 15% of the gas fees they produce, providing developers with an additional source of income. This idea originated from a plan known as the “dApp Gas Monetization Program,” which had already passed a community governance vote earlier this year.
The proposal sought to address and reduce Fantom’s current burn rate, directing more network fees towards applications built on the platform. With the implementation of the program now completed, Fantom’s burn rate has been reduced from 20% to 5%, while the 15% reduction is redirected towards gas monetization. By rewarding in-demand applications, the gas monetization strategy aims to retain developers and support Fantom’s network infrastructure.
Gas fees, a controversial topic in the blockchain ecosystem, are paid by users of a blockchain’s native token, such as Fantom (FTM) in this case. While fees on Fantom amount to just a fraction of a few cents per transaction, they accumulate over time, resulting in a significant cost for users of Fantom-based projects.
Critics might argue that such initiatives may contribute to increased gas fee dependency and hinder the innovation of alternative solutions. However, proponents of the initiative believe it is essential to secure the network’s growth and reward developers for utilizing the platform.
Data indicates that some projects have already begun benefiting from the monetization program mere hours after its implementation on Sunday. Notably, Cross-chain bridge Stargate Finance has earned 8,300 FTM (equivalent to just over $2,600 at current prices), and decentralized exchange SpookySwap gained 978 FTM (just over $300).
In summary, the dApp Gas Monetization Program introduced by Fantom seeks to address the burn rate issue and redirect network fees towards applications built on its platform. Although the initiative has its drawbacks, such as potentially increasing gas fee dependency, the overall aim is to support Fantom’s network infrastructure and reward developers for their efforts in building on the platform. Time will tell whether this approach proves to be successful and beneficial for both the community and the developers involved in Fantom-based projects.
Source: Coindesk
